BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
REALIZED, SOLD, OR CONSUMED BEYOND THE NORMAL OPERATING CYCLE
|
|
|
REALIZED WITHIN 12 MONTHS AFTER THE END OF THE REPORTING PERIOD
|
|
|
HELD FOR TRADING
|
|
|
CASH OR CASH EQUIVALENTS
|
Detailed explanation-1: -Current assets are assets that can be easily converted into cash and cash equivalents (typically within a year). Current assets are also termed liquid assets and examples of such are: Cash. Cash equivalents.
Detailed explanation-2: -“An asset is recognised in the balance sheet when it is probable that the future economic benefits will flow to the entity and the asset has a cost or value that can be measured reliably.” transactions or events, without bias or error.
Detailed explanation-3: -Accounts receivable, prepaid rent, and supplies are all current assets. Property, plant, and equipment are classified as non-current assets because they have useful lives of more than one year.
Detailed explanation-4: -Assets are classified into three main classes: convertibility, usage, and physical existence.